Case Analysis Of Baiyuan Trousers Cross-border Merging Tesco Global Electronic Business Company

With the development of science and technology,electronic,information and network have become the label of the times.New economic wave strongly impact the development of traditional enterprises.Clothing industry is an important part of the traditional industry.Due to backward production capacity and slow technology updating,clothing industry has not been able to adapt to the trend of the times.Rise in raw material and shop rent prices,product unsalable,large backlog of inventory,as well as the impact of emerging industries such as electronic business platform make China's clothing enterprises encounter a bottleneck in the development.So,it is urgent to look for a new development model.However,due to the inherent limitations of traditional enterprises,the effectiveness of seekingself transformation is quite small.Thus,cross-industry mergers become an effective way to transform traditional enterprises.By cross-industry merging,traditional enterprises can be integrated with the emerging industries,absorbing their high-quality resources and advanced technology to inject new blood.It was successful for Baiyuan trousers to mergerTesco global electronic Business Company,a cross-border electronic commerce enterprise.The enterprise,which got into management dilemma opened a new era of vigorous development.This paper analyzes the case of M & A.Firstly,it introduces the related articles,theory and basic information of two companies.Combined with the background and program of the case,the characteristics of merger mainly including for cross-industry merger and premium merger.Secondly,it analyzes the motivation,synergistic effect and performances of the merger and then concludes the reasons of success and existing problems.The performance analysis include market performance analysis and financial performance analysis.We use event study method to analyze market performance and use financial ratios to analyze financial performance.The success factors of merger are mainly summarized as the correctness of the choice of subject matter and the effectiveness of resource integration.Finally,it put forward enlightenments the solutions..By analyze this case,we find that traditional clothing enterprises merging emerging industries such as e-commerce can lead to transformation and upgrading of garment enterprises,effective integration of resources can lead to good synergistic effect enhancing profitability and corporate value.Facing current business difficulties,traditional enterprises can learn from the experience of Baiyuan trousers when having difficulties in self improvement and achieve sustainable development by cross-border merging..